Wednesday, June 20, 2007

MLS® resale housing market shatters all previous records in MayMajor market activity on track to set a new annual record in 2007

OTTAWA – June 14, 2007 – MLS® residential sales activity, new listings, average prices and dollar volume in Canada's major markets broke all previous monthly records in May, according to statistics released by The Canadian Real Estate Association (CREA).

Actual MLS® home sales activity in Canada's major markets was up 11.6 per cent year-over-year to 42,039 units in May 2007. Led by year-over-year gains in Toronto and Montréal, this was the first time in history that sales activity in Canada's major markets surpassed 40,000 transactions in one month.

On a seasonally adjusted basis, activity rose by 1.3 per cent from the previous month to 31,053 units in May. The increase was fueled by a monthly increase in activity in Vancouver, Winnipeg, London & St. Thomas, Ottawa and Montréal. Seasonally adjusted sales activity set new monthly records in Winnipeg, Ottawa, Montréal and Saint John, and reached the second highest level on record in Saskatoon, Regina and Toronto.

“Dramatic price increases and additional listings in Alberta's major markets are causing some buyers in that province to take a bit longer to make a purchasing decision,” notes CREA Chief Economist Gregory Klump.

Year-to-date transactions also set new records in most major markets in May. Transactions via Board and Association MLS® systems numbered 165,800 units in Canada's major markets during the first five months of 2007, which represents an increase of 8.5 per cent over the same period last year.

“Activity broke all previous records in the first quarter, and gained momentum in the second quarter,” Klump said. “The increase in transactions for the year-to-date suggests activity is on track to set a new annual record this year.”

MLS® residential new listings also reached the highest level ever in May, climbing 6.7 per cent year-over-year to 63,165 units. This was also the first time that the number of new listings on Board and Association MLS® systems in Canada's major markets surpassed 60,000 units in a single month.

Seasonally adjusted MLS® residential new listings rose 0.8 per cent month-over-month to 49,665 units in May to surpass the previous monthly record set in October 1990. The monthly increase was fueled by a large rise in new listings in Edmonton, and additional new listings in Calgary and Saskatoon. Seasonally adjusted new listings in Calgary and Edmonton reached their highest levels ever in May.

The major market MLS® residential average price rose 10.2 per cent year-over-year to set a new monthly record of $333,524 in May. Average price reached the highest monthly level on record in many of Canada's major markets including Vancouver, Calgary, Edmonton, Regina, Saskatoon, Toronto, London & St. Thomas, Hamilton-Burlington & District, Montréal, Quebec City and Halifax-Dartmouth.

“With mortgage interest rates on the rise and an increasing supply of new listings on the market, CREA expects that price increases will return to the single digits in the second half of this year,” added Klump. “CREA forecasts that the annual national average price will rise by 9.5 per cent in 2007, and by 5.5 per cent in 2008.”

“Canada's resale housing industry is a driving force behind the national economy, and a new study released by The Canadian Real Estate Association shows the average MLS® home sale generates $32,200 in additional consumer spending above and beyond the purchase price,” said CREA President Ann Bosley. “Job creation is also a major spin-off benefit of the resale housing market, with more than 94,000 jobs created in Canada each year as a direct result of resale housing transactions.”

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada's real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 90,000 REALTORS® working though more than 100 real estate Boards and Associations. CREA's primary mission is to represent members at the federal level, and to defend the public's right to own and enjoy property.

This report is published by the Communications Department of The Canadian Real Estate Association (CREA). Further information can be found at www.crea.ca.